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CENTRAL
PENSION FUND
CPF
FACTS:
-
Established
in 1960
-
Jointly
administered by labor and management trustees
-
5th
largest labor-management pension plan in the U.S.
-
78
participating IUOE Local Unions nationwide
-
More
than 8000 participating employer locations nationwide
-
More
than 125,000 active participants and pensioners
-
Nationwide
reciprocity with all other IUOE Local Unions pension plans
-
Fully
funded vested benefits
-
No
employer withdrawal liabilities
-
Benefits
guaranteed by the U.S. Pension Benefit Guaranty Corporation
CPF
FUNDAMENTALS
-
Participating
employers negotiate contracts with IUOE Local Unions, agreeing to
make contributions to CPF on behalf of each employee for every hour
worked.
-
CPF
keeps separate records of contributions received for every employee
-
When
employees reach retirement age, they are entitled to a monthly benefit
for life equal to 3.3% of the total employer contributions made to CPF
for them during their working careers.
-
After
just 30 months of benefits at 3.3%, CPF retirees have received 99% of
the contributions make during their working careers—but they
continue to receive that monthly CPF benefit for the remainder of
their lives.
CPF
BENEFITS
-
NORMAL
RETIREMENT BENEFIT: Payable at normal retirement (usually 65).
-
EARLY
RETIREMENT BENEFIT: Payable as early as age 55 with 10 years of
service. It is equal to the Normal Retirement benefit reduced by 3%
per year for years prior to age 65.
-
SPECIAL
RETIREMENT: Payable at age 62 with 25 years of service. It is equal to
the Normal Retirement benefit.
-
POST-RETIREMENT
SURVIVING SPOUSE BENEFIT: Payable to the surviving spouse of a
deceased retiree for life, at optional levels of 50%, 66 2/3%, or
100%. It is actuarially equal to the Normal Retirement benefit paid
over two lifetimes.
-
PRE-RETIREMENT
SURVIVING SPOUSE BENEFIT: Payable at any age to the surviving spouse
of a vested participant who dies before retirement. It is a lifetime
benefit equal to the Normal Retirement.
WHY
CPF IS CLEARLY SUPERIOR TO 401(K) PLANS
-
CPF
is a real pension plan- 401(k) s are just tax-deferred savings plans.
-
Only
employers make CPF contributions-employees must make 401(k)
contributions from their wages.
-
At
retirement CPF participants receive a guaranteed monthly benefit for
life- 401(k) participants just get a lump sum repayment for their
contributions and investment income, and must then make that lump sum
last for life.
-
CPF
has available lifetime surviving spouse benefits-401 (k) plans do not.
-
401(k)
participants bear all of the risk of bad investment decisions- CPF
investments are made by professionals, and participants bear no risk.
-
CPF
benefits are guaranteed by the U.S. Pension Benefit Guaranty
Corporation- 401 (k) benefits are not.
For further information
contact Central Pension Fund at the following:
4115 Chesapeake Street, N.W.
Washington, D.C. 20016-4665
Telephone: (202) 362-1000
Fax: (202) 364-2913
www.cpfiuoe.org
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